Today, younger Americans, especially those born in the 1990s, continue to face major uphill battles towards realizing their dream of homeownership. This is a challenge that many 35-year-olds, even those with stable and well-paying jobs, find increasingly insurmountable when trying to buy a home. They continue to fight a heavy burden of negative equity from the abrupt housing turnaround. The reality is, everybody is clamoring to grab their slice of that American dream.
Matt A., 35, a New York City–based freelance journalist and writer, just purchased a lovely, if tiny, top-floor third-floor Brooklyn apartment. This charming unit has two bedrooms and 690 square feet. He has stable employment, a good salary, and a home with a white fence. Yet, despite all of this, he still considers himself one of the lucky few who made it through the home buying gauntlet unscathed. With good grades, part-time work during college, and a degree from a reputable university, Matt’s journey reflects the struggles of many in his generation.
Reality is harsh for many younger Americans. The irony of the bubble Economists argue that when homeownership appears unattainable, people tend to overpay. They may reduce their labor supply and invest in more hazardous financial projects. Fifteen point three percent of credit card toting Gen Zers have tapped out their cards. This statistic makes clear the need to address the burdensome costs being imposed on them.
Financial adviser Kurt Supe argues that younger generations have to fight much harder just to enter their homes. He states, “Can they afford houses with full-time jobs at, like, 27, 28? And the answer is no way. And the answer is that 35-year-olds with really good jobs can’t afford a house unless they stretch and go deep into debt.”
The healthcare industry is now the largest employer in 38 of 50 states. Consequently, millions of young Americans are reconsidering their professional trajectories. The struggle is real — and a wave of those in their 30s and 40s are already “quiet quitting.” Others are worth going all-in on risky bets like online poker and cryptocurrency to protect their financial future.
Expectations from younger Americans about homeownership are a world apart from what previous generations experienced. One individual expressed frustration about the current state of the housing market: “And that’s kind of the shock around all this is. Like, if we [could barely do it], who the hell is supposed to be able to do this? We have a lot of single friends who’ve been talking about buying places for years, and it’s just impossible. Otherwise, they’ll rent forever. And the only way to do that is if they marry someone who makes them almost as much money as they do.
Neal Gabler, a cultural critic, aptly summarizes the current economic climate: “In the 1950s and 60s, economic growth democratized prosperity. In the 2010s, we have democratized financial insecurity.” This jarring reality illustrates the increasing chasm between younger and older generations with respect to economic security and opportunity.
The dream of homeownership seems unattainable to many younger Americans, and they’re deeply disillusioned about their prospects. A professor at Columbia Business School remarked that for someone born today, “it is just a coin flip whether they will be able to afford a home.” This volatility has forced millions of millennials to play the guessing game when it comes to their long-term financial stability.
Generational wealth discussions shed light on alarming trends. Many baby boomers plan to live fully and leave little for their heirs or choose to donate to charity instead. This trend deprives younger Americans of the financial cushions previous generations might have had.
To illustrate the generational divide regarding homeownership, one commentator noted: “My parents had three children, two houses, two plots of land, and two businesses by the time they were 35.” This retrospective look serves to remind us of how drastically different economic times were just a short while ago.
Through the overwhelming disappointment, there’s still hope among at least some of the people involved. Some believe that financial freedom and knowledge of economic concepts will better prepare the next generation to overcome these obstacles with success. “At some point the basic economics really matter,” stated Tucker Carlson.
Younger Americans find it extremely difficult to attain homeownership and some may never be able to. These challenges are more than just individual experiences, they reflect broader economic forces at play. The reality is that the road back to homeownership for most is still paved with disappointment and hardship.